Service tax. (d) substitute the word "client" with the words "any person" in the specified taxable services;

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1 Page 1 of 8 Service tax Clause 85 seeks to amend Chapter V of the Finance Act ' 1994 relating to service tax in the following manner, namely:-(/) sub-clause (A) seeks to amend section 65 of the said Act, so as to,- (a) define the terms - associated enterprise information technology software, interne telecommunication service, processing and clearing house; (b) specify the scope of the following taxable services - banking and other financial service, business auxiliary service, cargo handling service, internet telecommunication service, management, maintenance or repair service, renting of immovable property service consulting engineer service, information technology software service, management of investment under Unit Linked Insurance Plan (ULIP) service, stock exchange service, recognised association or registered association commonly known as commodity exchanae service, processing and clearinghouse service, supply of tangible goods for use service, technical testing and analysis service, technical inspection and certification service, tour operator service; (c) omit the taxable service "internet telephony"; (d) substitute the word "client" with the words "any person" in the specified taxable services; (e) substitute the word "customer" with the words "any person" in the specified taxable services; (//) sub-clause (B) seeks to amend section 66 of the said Act, so as to specify the following services as taxable services, namely:- (a) (b) (c) information technology software service, management of investment under Unit Linked Insurance Plan (ULIP) service, stock exchange service,

2 Page 2 of 8 (d) recognised association or registered association commonly known as commodity exchange service, (e) processing and clearinghouse service, (f) supply of tangible goods for use service, (g) internet telecommunication service; (///) sub-clause (C) seeks to amend section 67 of the said Act, so as to include any amount credited or debited in the books of account within the scope of the term "gross amount charged" where the transaction of taxable service is with any associated enterprise; (IV) sub-clause (D) seeks to insert new sections 71 and 72 respectively in the said Act so as to - (i) empower the Board to frame a Scheme by notification in the Official Gazette for filing service tax returns by any person or class of persons in preparing and furnishing return required to be filed under section 71 through a Service Tax Return Preparer authorised to act under the Scheme. It seeks to provide that a Service Tax Return Preparer shall assist the person or class of persons furnishing the return in such manner as may be specified in the Scheme and seeks to define "Service Tax Return Preparer" and "Specified person or class of persons". It seeks to provide the manner in which and the period for which the Service Tax Return Preparer shall be authorised, the educational and other qualifications, the training and other conditions required to be fulfilled, the code of conduct, the duties and obligations, the circumstances under which the authorisation may be withdrawn and any other matter which is required to be, or may be specified by the Scheme; (ii) authorise the Central Excise Officer for assessment on the basis of his best judgment after allowing assessee to represent his case where assessee fails to make service tax returns as required under section 70 or if return have been made out fails to assess the tax in accordance with the provisions of the Act or rules made thereunder.

3 Page 3 of 8 (V) sub-clause (E) seeks to substitute section 77 of the said Act so as to provide for specific penalty for specific contraventions which are as follows:- In case of violation of the provisions of section 69, failure to furnish certain information, and failure to appear before the Central Excise Officer a penalty up to five thousand rupees or rupees two hundred every day till such contravention continues, whichever is higher, starting with the first day after the due date, till the date of actual compliance. In case of failure to pay service tax electronically, issuance of incorrect or incomplete invoices and general contravention, a penalty of up to five thousand rupees. (VI) sub-clause (F) seeks to amend section 78 of the said Act so as to provide that where penalty for suppressing value of taxable service under section 78 is imposed, the penalty for failure to pay service tax under section 76 shall not be applicable; (VII) sub-clause (6) seeks to insert the word, figures and letters "section 35FF" in section 83 of the said Act which deals with the application of certain provisions of the Central Excise Act, (VIII) sub-clause (H) seeks to amend section 86 of the said Act with a view to insert a proviso,- (/) to sub-section (2) so as to provide that in case the Committee of Chief Commissioners of Central Excise differs in its opinion regarding the appeal against the order of the Commissioner of Central Excise, it shall refer the matter to the Board which shall, after considering the facts of the order and the points of difference between them and if it is of the opinion that the order passed by the Commissioner is not legal or proper, direct the Commissioner to appeal to the Appellate Tribunal against the order. (//) to sub-section (2A) so as to provide that in case the Committee of Commissioners differs in its opinion regarding the appeal against the order of the Commissioner (Appeals), it shall record the point or points of difference between them and refer the matter to the jurisdictional Chief Commissioner who shall, after considering the facts of the order and if he is of the opinion that the order passed by the Commissioner (Appeals) is not legal or proper, direct the Central Excise Officer to appeal to the

4 Page 4 of 8 Appellate Tribunal against the order of the Commissioner (Appeals). The jurisdictional Chief Commissioner shall be the Chief Commissioner having jurisdiction over the adjudicating authority who has decided the case. (IX) sub-clause (/) seeks to amend section 94 of the said Act to provide that the Scheme framed by the Board under section 71 shall be laid before each House of Parliament. (X) sub-clause (J) seeks to amend section 95 of the said Act so as to empower the Central Government to issue orders for removal of difficulty in case of implementing, classifying or assessing the value of any taxable service incorporated by the proposed legislation in this Chapter, up to one year from the date of enactment of the Finance Bill, Clause 86 relates to short title and commencement of a Scheme for resolution of disputes in service tax to be called the Service Tax Disputes Resolution Scheme, Clause 87 contains definition of certain terms and expressions used in the Scheme. Clause 88 seeks to provide that Scheme would not be applicable in cases where tax arrears includes service tax amount of more than twenty-five thousand rupees and where notice or order has been issued under section 73A of the Finance Act, 1994 Clause 89 seeks to specify the time frame for making the declaration by a person against whom tax arrear is pending, to the designated authority and rate of amount payable under the Scheme by the declarant. Clause 90 provides that a declaration under the Scheme will be made before the designated authority and further provides that the declaration will be in such form or manner as may be prescribed. Clause 91 provides that designated authority shall determine the amount payable on the basis of declaration, within fifteen days of the receipt of the declaration and will pass order on the declaration received by him. The declarant shall pay the sum determined by the designated authority and furnish proof of such payment before him. The designated authority will also issue certificate to the person making the declaration

5 Page 5 of 8 stating therein the particulars of the sum payable by the declarant. The clause further provides that the matter once determined will not be opened for such dispute in the court of law or before any other forum. In case the declarant has filed a writ petition for appeal or reference before any High Court or Supreme Court against any order in respect of tax arrear, the declarant shall file application before the High Court or Supreme Court for withdrawing such writ petition or reference and shall provide proof of such withdrawal. Clause 92 provides that appellate authority shall not proceed to decide any issue relating to tax arrear specified in the declaration and in respect of which an order had been made by the designated authority. Clause 93 seeks to provide that amount paid in pursuance of the declaration shall not be refundable under any circumstances. Clause 94 clarifies that, except as expressly provided therein the Scheme should not be construed as conferring any benefit, concessions or immunity on the declarant in any assessment or proceeding other than in respect of which the declaration pertains to. Clause 95 seeks to empower the Central Government to pass any order not inconsistent with the provisions of the Scheme for removing any difficulty which may arise in giving effect to its provisions. All such orders made by the Central Government shall be required to be laid before each House of Parliament. Clause 96 seeks to empower the Central Government to make rules for carrying out the provisions of the Scheme. All rules made under the Scheme shall be laid before each House of Parliament. Clauses 97 to 116 provide for levy of tax on taxable commodities transactions entered in a recognised association. Clause 97 deals with the extent, commencement and application of Chapter VII. Clause 98 of the Bill is the definition provision. Sub-clause (5) of this clause defines taxable commodities transaction to mean a transaction of purchase or sale of option in

6 Page 6 of 8 goods, or option in commodity derivative, or any other commodity derivative, traded on recognised associations. Clauses 99 and 100 seek to make a provision for the charging of a tax called "commodities transaction tax" at the rate of- (i) per cent, of the option premium, payable by the seller, in the case of sale of an option in goods or an option in commodity derivative; (ii) per cent of the settlement price of the option in goods or an option in commodity derivative, as the case may be, payable by the purchaser, in the case of a sale of an option in goods or an option in commodity derivative, where option is exercised; (iii) per cent, of the price at which the commodity derivative is sold, payable by the seller of any other commodity derivative, in the case of a sale of such commodity derivative. Clauses 101 to 114 provide for collection and recovery of commodities transaction tax, furnishing of returns, assessment procedure, power of Assessing Officer, rectification of mistake, chargeability of interest, levy of penalty, institution of prosecution and filing of appeals. Further, it also provides that various procedural provisions in the Income-tax Act will, so far as may be, apply in relation to commodities transaction tax. Clause 115 confers powers on the Central Government to make rules for the purposes of carrying out the provisions of this Chapter. This clause also provides that every rule made under this clause shall be laid before each House or Parliament. Clause 116 of the Bill confers power on the Central Government to issue orders for removal of any difficulty arising in giving effect to the provisions of this Chapter. This power is available to the Central Government for a period of two years from the date on which the provisions of this Chapter come into force. Every order made under this clause shall be laid before each House of Parliament. Clauses 97 to 116 will take effect from the date to be notified by the Central Government.

7 Page 7 of 8 Clause 117 seeks to amend the Seventh Schedule to the Finance Act, 2001 so as to omit certain existing tariff items and include certain new tariff items in the said Schedule. It also proposes to substitute certain entries with a view to enhance the rate of duty. Clause 118 seeks to amend section 13 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, Sub-section (1) of section 13 provides that notwithstanding anything contained in the Income-tax Act, 1961 or any other enactment for the time being in force relating to tax or income, profits and gains, no income tax or any other tax shall be payable by the Administrator in relation to the specified undertaking for a period of five years computed from 1st February, 2003 in respect of any income, profits or gains derived, or any amount received in relation to the specified undertaking. It is proposed to amend sub-section (1) to allow the exemption for the period beginning on 1st February, 2003 and ending on 31st March, This amendment will take effect retrospectively from 1st February, Clause 119 seeks to amend the provisions of Chapter VII of the Finance (No. 2) Act, 2004, relating to the securities transaction tax. Section 98 of the said Act provides for charge of securities transaction tax. It is provided that in the case of sale of a derivative, where the transaction of such sale is entered into in a recognised stock exchange, the securities transaction tax will be at the rate of per cent, and will be payable by the seller. It is proposed to substitute said serial No. 4 of the Table in section 98 and also amend section 99 of the said Act so as to provide that the securities transactions tax shall be levied at the rate of per cent, on sale of a futures in securities and shall be payable by the seller; per cent, of the option premium on the sale of a derivative, being option in securities and shall be payable by the seller; and per cent, of the settlement price on the sale of an option in securities, where option is exercised, and shall be payable by the purchaser.

8 Page 8 of 8 This amendment will take effect from 1st June, Clause 120 seeks to amend section 95 of the Finance Act, 2005, relating to charge of banking cash transaction tax. It is proposed to insert a new sub-section (3) in section 95 so as to provide that no banking cash transaction tax shall be charged in respect of any taxable banking transaction after 31st March This amendment will take effect from 1st April This clause also seeks to amend the Seventh Schedule of the said Act, so as to substitute certain entries with a view to enhance the rate of duty.

UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017

UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 [14 OF 2017]* An Act to make a provision for levy and collection of tax on intra-state supply of goods or services or both by the Union territories and